The Financial Services Commission (FSC) in South Korea is preparing key steps to reshape the cryptocurrency landscape. These measures include discussions around approving Bitcoin spot exchange-traded funds (ETFs) and allowing companies to open corporate accounts for cryptocurrency exchanges. Led by the FSC, these actions signal a shift in the regulation of virtual assets, which could lead to significant growth and investment opportunities in the Korean crypto market.
One of the core topics of the FSC’s further development plan is the possibility of setting up a Virtual Asset Committee. This committee would also authorize and possibly permit Bitcoin spot ETFs; these are not probable in South Korea at the time being. As currently envisioned, ETFs are not allowed under the Capital Market Act list of acceptable assets. However, the formation of this committee signals a possible shift to these restrictions, allowing more regulated crypto investment products to be available to both small and institutional investors.
Also Read: South Korean Lawmaker Introduces Amendment to Crack Down on Crypto Insider Trading and Bribery
Impact on the Kimchi Premium and Market Access
The next step is to narrow the ‘Kimchi premium,’ the difference between the market price of cryptocurrencies within South Korea and the global price hoped to be achieved once Bitcoin spot ETFs are approved. Regarding arbitrage funds and market makers, the FSC hopes to make local crypto prices comparable with the prices around the world. This change would increase the flow quality and establish a state’s sound and controlled crypto market environment.
Additionally, the FSC is considering allowing corporate accounts for cryptocurrency exchanges. Corporations face barriers to opening these accounts due to money laundering concerns. If these policies change, corporate participation in the crypto market will increase, boosting market activity and security. The FSC has also emphasized the need for strong anti-money laundering measures to maintain market integrity.
The FSC’s initiatives extend further, including creating a Digital Asset User Protection Foundation. This body will safeguard users’ assets in case of business failures, adding another layer of security for investors. Alongside these moves, the FSC plans to strengthen market monitoring and tackle unfair trading practices, improving overall market stability.
Conclusion
South Korea’s FSC is taking decisive steps to improve the regulatory environment for cryptocurrencies. Through the potential approval of Bitcoin spot ETFs and corporate accounts, the FSC is positioning the country to offer a more accessible, secure, and regulated market for virtual assets.
Also Read: South Korea Boosts Crypto Crime Fight with New Investigation Division and Strict User Protection Law
